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HomeMy WebLinkAbout049-R-21 Negotiating & Executing a Twenty-Five Year Alley Easement at 1708-1712 Sherman Ave with the Varsity LLC4/19/2021 49-R-21 A RESOLUTION Authorizing the City Manager to Negotiate and Execute A Twenty -Five Year Alley Easement At 1708-1712 Sherman Avenue with The Varsity LLC, an Illinois Limited Liability Company NOW BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: The City Manager is Thereby authorized and directed to sign an Easement Agreement (the "Agreement") by and between the City ("Grantee") and The Varsity, LLC ("Grantor") for the City to grant a twenty-five (25) year alley easement between Sherman and Benson Avenues for the construction, maintenance, use, and pedestrian ingress and egress over and across the parcel. The Agreement is attached hereto as Exhibit 1 and incorporated herein by reference. SECTION 2: The City Manager is hereby authorized and directed to negotiate any additional conditions of said Agreement that she deems to be in the best interests of the City. SECTION 3: This resolution shall be in full force and effect from and after its passage and approval, in the manner provided by law. 49-R-21 Attest: jFdctLt,/do Gox4ez Eduardo Gomez, Deputy City Clerk Adopted: MqV 1n , 2021 Stephen H. Hagerty, Mayor Approved as to form: ./ t,md-i 6. Cant; yj Nicholas E. Cummings, Corporation Counsel -2- 49-R-21 EXHIBIT 1 EASEMENT AGREEMENT -3- This instrument has been prepared by and should be returned after recording to: City of Evanston 2100 Ridge Avenue, Room 4400 Chicago, IL 60201 Attn: Law Department This space reserved for Recorder's use only. EASEMENT AGREEMENT This Easement Agreement (this "Agreement") is entered into this day of , 2021, by and between the City of Evanston, an Illinois home rule municipal corporation (the "City"), and The Varsity, LLC, an Illinois limited liability company ("Grantee"). RECITALS WHEREAS, Grantee owns certain property located at 1706-1710 Sherman Avenue, Evanston, Illinois, legally described in Exhibit A attached hereto (the "Subject Property"); and WHEREAS, the City owns and has jurisdiction over a public right-of-way, an alley that extends between Sherman Avenue and Benson Avenue (the "Alley"); and WHEREAS, that part of the Alley approximately twenty (20) feet in width, commencing at Sherman Avenue adjacent to the Subject Property and extending west for a distance of one hundred fifty-five (155) feet, for a total easement area of approximately 3,100 square feet, is depicted and legally described in Exhibit B attached hereto (the "Easement Premises"); and WHEREAS, Grantee desires to have certain rights in the Easement Premises to improve the Easement Premises as a pedestrian space, appurtenant to the Subject Property, for incorporating art, upgraded hardscaping and lighting, outdoor dining, seating and special events (collectively, "Alley Improvements"); and WHEREAS, to construct, maintain and operate the Alley Improvements, Grantee desires to receive certain easement rights from the City, and the City desires to grant such easement rights to Grantee, in accordance with the terms of this Agreement and all applicable federal, state, and local laws, codes, rules and regulations (collectively, "Legal Requirements"). NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to enter into this Agreement on the following terms and conditions: 1. Recitals. The foregoing recitals are material to this Agreement and are incorporated herein as though fully set forth in this Section 1. 2. Grant of Easement. Subject to the terms and conditions contain herein, the City hereby grants and conveys to Grantee, its successors, grantees, agents, and assigns, perpetual easements appurtenant to the Subject Property (collectively, the "Easements") in, over, upon, and across the Easement Premises for the following uses and purposes: (a) an exclusive easement to install, maintain, repair, and replace the hardscape surface of the Easement Premises, including base and sub -base layers, as necessary for pedestrians, accessible paths, and vehicular traffic, including the right to install decorative materials and traffic bollards or other detachable devices at each end of the Easement Premises to create a pedestrian -only, safe zone in the Easement Premises, subject to the rights reserved herein to the City to ensure access for utility repairs and emergency ingress and egress; and (b) an exclusive easement to use, install, maintain, repair, and replace storefront entrances opening onto the Easement Premises from openings in the fagade of the buildings now or hereafter adjoining the Easement Premises (the "Adjoining Buildings"); and (c) an exclusive easement to use, install, maintain, repair, and replace non- permanent awnings, pergolas, trellises, overhead and alley lighting, signage and art installations in the Easement Premises; and (d) an exclusive easement for outdoor seating, dining, cafes, art fairs, concerts and similar uses sponsored by Grantee or the tenants of the Adjoining Buildings, including the right to install non -permanent seating and ancillary items customarily used in outdoor dining venues in the City. If at any time Grantee shall desire to provide improvements or uses within the Easement Premises that further the goals of creating a vibrant pedestrian space and supporting the goals of the City's comprehensive plan, Grantee shall have the right to request such additional easements from the City, which may be adopted by amendment to this Agreement. 3. Reserved Riahts. The City reserves the concurrent use of the Easement Premises and all rights appurtenant to the City's ownership thereof, including, without limitation, the right of ingress and egress to enter under, across and over the Easement Premises for any reason for inspections and for the City, from time to time, to install, operate, maintain, repair, replace, remove and relocate any of the facilities or equipment in, under or above the Easement Premises used in connection with the public water supply, sanitary sewer, storm drainage, or other public utilities and to allow any such entry by public utilities and cable companies in accordance with Legal Requirements and in such manner as the City shall deem proper so long as such use does not materially interfere with the enjoyment of the Easements for their intended purposes; provided, however, the City at all times shall enjoy the right of ingress and egress to enter under, across and over the Easement Premises for the City's fire, police and first responders in any emergency or situation involving imminent danger to any person or property. The City shall use reasonable efforts to minimize disruption to the tenants and businesses operating within the Adjoining Buildings and to provide continued access thereto from the entrances located in the Easement Premises in connection with the City's exercise of its reserved rights, and when practicable, in the City's discretion, to perform such work during other than daytime business hours. 4. Easement Conditions. The grant of Easements in this Agreement shall be subject to the following conditions: (a) At all times, Grantee in the exercise of its easement rights shall comply with Legal Requirements. Without limiting the foregoing, Grantee shall not interfere with the stormwater catch basins or related appurtenances in the Easement Premises for collecting and channeling stormwater into the City's storm sewers. (b) Grantee, at its cost, shall maintain insurance in such amounts and with such coverages as shall be required by the City and shall name the City as an additional insured thereunder, in connection with the use and maintenance of the Easement Premises, comparable to the insurance from time to time required for permits to use park facilities or similar City -owned property. The amounts and type of insurance required shall be reasonably determined by the City, based upon the nature of the activity and the risk involved. (c) The cost of the easement shall be $0.734 per square foot in 2021 and increase 2% per year throughout the term of the easement for a total cost of $72,881.74. The total cost shall be payable by Grantee to the City upon execution of this Agreement. Grantee shall not expand the scope of the Easement Premises without written consent of the City. (d) The City shall have no obligation to pay any of the costs of Alley Improvements installed adjacent or within the Easement Premises. All maintenance, repair, replacement activities for Alley Improvements are at Grantor's expense, except in the event of negligent damage caused by the City's exercise of its reserved rights, in which event the City shall be responsible for reimbursing Grantee for the documented, out-of-pocket third - party costs of restoration following any such damage. (e) Grantee agrees to perform or cause to be performed all necessary maintenance, repair and replacements to the surface of the Easement Premises and the Alley Improvements (to the extent within the rights granted herein to Grantee) to keep the same in good order and repair; however, if in the exercise of the City's rights, damage to the 3 surface of the Easement Premises shall be necessary, then the City's sole obligation shall be to backfill any excavation and patch and repair the surface to normal standards for alleys but Grantee shall bear the cost of any specialty or decorative materials. (f) Grantee shall obtain, at its sole cost and expense, outdoor cafe seating permits, special events permits, and any other applicable permits required by the City. 5. Indemnification. Grantee will hold harmless, indemnify and defend the City, its lessees, franchises, licensees, employees, agents, personal representatives, contractors, successors and assigns, against any and all claims, demands, loss, damage, liabilities, costs, expenses and all suits liens, causes of actions and judgments (including, but not limited to reasonable attorney's fees) arising out of, or in any way related to, or in connection with, or as a result or consequence of the Easements and/or use of the Easement Premises or Grantee's acts or omissions under this Agreement, to the extent of Grantee's willful or negligent exercise of rights and privileges granted by this Agreement. Grantee's obligations in this section shall survive any termination or expiration of this Agreement. 6. Release. Grantee shall enter upon the Easement Premises and exercise its rights granted under this Agreement at its sole risk, cost and expense. Grantee hereby waives and relinquishes any and all claims, demands, loss, damage, liabilities, costs, expenses and all suits, liens, causes of actions and judgments related to the subject matter of this Agreement now or hereafter arising in Grantee or any of its employees', contractors' or agents' favor occasioned by, directly or indirectly, the conditions of the Subject Property and the Easement Premises or any improvements thereon or any other facts or occurrences with respect to Grantee's conduct under this Agreement, other than willful or negligent acts of the City. Grantee's obligations in this section shall survive any termination or expiration of this easement agreement. 7. Notice. All notices required to be given under this Agreement shall be in writing and shall be given by United States mail or by United States express mail or other established express delivery service (such as Federal Express), postage or delivery charge prepaid, return receipt requested, and addressed to the person and addresses designated below. If to Grantor: Director of Public Works Evanston Civic Center 2100 Ridge Avenue Evanston, IL 60201 with a copy to: Law Department Evanston Civic Center 4 2100 Ridge Avenue Evanston, IL 60201 If to Grantee: The Varsity, LLC 1780 Ash Street, Suite 201 Northfield, IL 60093 The person and address to which notices are to be given may be changed at any time by either party and by written notice to the other party. All notices given pursuant to the Agreement shall be deemed given upon receipt. 8. Entire Aareement; Severabilitv. This document contains the entire agreement between the parties relating to the rights granted herein and the obligations herein assumed. Any oral representations or modifications concerning this Agreement shall be of no force and effect, and modifications to this Agreement shall be in writing and shall be signed by all parties to this agreement. Invalidation of any term or provision of this Agreement shall in no way affect any other term or provision hereof, which other terms and provisions shall remain in full force and effect. 9. Run With Land. This Agreement shall run with and bind the land for a term of 50 years from the date this Agreement is recorded after which time this Agreement shall be automatically extended for successive periods of 10 years unless an instrument amending this Agreement as hereinafter provided shall be recorded to provide for some other duration. If any other agreements or covenants created by this Agreement would otherwise be unlawful or void for violation of (a) the rule against perpetuities or some analogous statutory provision, (b) the rule restricting restraints on alienation, or (c) any other statutory or common law rules imposing time limits, then such easements, rights, restrictions, agreements, or covenants shall continue only until 21 years after the death of the last survivor of the now living lawful descendants of any now living current or former President of the United States. 10. Venue; Remedies. The laws of the State of Illinois shall govern the terms of this Agreement both as to interpretation and performance and any action brought to enforce the Agreement shall be brought in the Circuit Court of Cook County. In addition to any and all other remedies it may have, each party may enforce this Agreement by a suit for specific performance; the failure of a party to enforce this Agreement or any particular provision hereof at any given time shall in no event be deemed a waiver of the right to do so thereafter. Prior to initiating any enforcement action, the initiating party shall notify the responding party of any breach of this Agreement and reasonably specific details of the breach, and the responding party shall thereafter have sixty (60) days within which to cure such breach (unless such cure requires more than sixty (60) days, in which case responding party shall have such time as is reasonable to commence, diligently pursue, and complete such cure, but in no event more than one hundred twenty (120) days). Notwithstanding the foregoing, in the event a breach of this Agreement creates an 5 emergency situation, then the breaching party shall be required to remedy the breach as soon as feasible and without delay. Notwithstanding anything contained herein to the contrary, no default by a party hereunder shall give any other party the right to terminate any of the easements or benefits granted under this Agreement. 11. Recordinq. This Agreement shall be recorded, at Grantee's expense, with the Cook County Recorder of Deeds notifying all future purchasers and other interested parties. 12. Counterparts. To facilitate execution of this Agreement, this Agreement may be executed in multiple counterparts, each of which, when assembled to include an original signature for each party contemplated to sign this Agreement, will constitute a complete and fully executed original. IN WITNESS THEREOF, this Agreement is made as of the date signed by the City. CITY OF EVANSTON THE VARSITY, LLC By: By: Erika Storlie, City Manager Steven Rogin, Manager Date: n STATE OF ILLINOIS SS COUNTY OF COOK I, , a Notary Public in and for said County, in the State aforesaid, do hereby certify that , personally known to me to be the City Manager of the City of Evanston, Illinois and the person who executed this agreement, appeared before me this day in person and acknowledged that he signed, sealed, and delivered the same instrument as his free and voluntary act for the uses and purposes therein set forth. Given under my hand and Notarial Seal this day of , 2021. STATE OF ILLINOIS RIM COUNTY OF COOK Notary Public (SEAL) I, , a Notary Public in and for said County, in the State aforesaid, do hereby certify that Steven Rogin, personally known to me to be the Manager of The Varsity, LLC, an Illinois limited liability company, and the person who executed this agreement, appeared before me this day in person and acknowledged that he signed, sealed, and delivered the same instrument as his free and voluntary act for the uses and purposes therein set forth. Given under my hand and Notarial Seal this day of 12021. Notary Public (SEAL) 7 EXHIBIT A LEGAL DESCRIPTION SUBJECT PROPERTY [TO BE PROVIDED] U) LLI cn 2 w w CL z w 2 w U) 4 LLI LL 0 z 0 w a 1. . 20' GRAPHICSCAUE 0 10 20 40 OUlL NGII, -4 rkn5" 2.00' if @ On Lbr ACCESS ACCESS N 89 oor 20.00, Rl.�CUS AWME.T 1 2y Kew = A"/O//�/'� 4 0: 0/�/ tiioo's .=L 100'E VAULT @ VAULT BITUMINOUS rr SHERMAN AVENUE N K Second Baptist Church 1717 Benson Avenue Evanston, It. 60201 p 847 869-6955 f 847 869-6599 ,,Nn,,w.secondbap ds tevan ston.org Reverend Dr. Michael C. R. Nabors Pastor Reverend Eddie Journey Executive Nfinister Craig Watson, Chairman Diaconate Minism, Vickie Horn, Chairman 'trustee Board April 20, 2021 Dear Mayor, Members of the City Council and City Officials, Second Baptist Church of Evanston is a one hundred and thirty nine year - old house ofworship located at 1717 Benson Avenue. We are one of the oldest institutions in the city as well as an important voice representing Black and brown people and many who have been disenfranchised through historical inequities. Kr-,stal Pemell Little, Treasurer As a neighbor tto the west of the proposed Bookman's Alley project, we Trustee Board have discussed the vision of what is being proposed with Steve. Please know that we are in support of the concept and we have shared our own Deacon Karen O. Davis Church Clerk perspective about how the alley may enhance businesses, strengthen pedestrian presence and create greater aesthetic beauty to the area. Activation of the eastern half of the Alley to create an inviting and engaging space for the community and visitors to Evanston, will benefit everyone, including Second Baptist Church members and visitors. We would be in support of the City of Evanston granting an easement to our neighbors in order to enhance the place making potential of that section of the alley. We have also had dialogue with many of our surrounding stakeholders and would welcome a similar treatment on the western segment of the alley so long as vehicular and service access on the wester half of the alley is maintained. We support this initiative because it will create another reason to visit downtown andenhance the character of our community. If I can be of further assistance, please fee] free to contact rne. Warmly, Rev. Dr. Michael C.R. NaborsPastor "Beacons ofLlght" Page 21 of 28 z SM O z o 0 EVANSTON To Whom It May Concern c/o Steven RoginNarsity LLC: Downtown Evanston's Executive Board of Directors supports a project at 1706-08 Sherman Avenue and including the "Bookman's Alley" which will help activate the alley and bring additional foot traffic and attention to the retailers in the alley including Alley Gallery, Saville Flowers and Bookends & Beginnings. It is our understanding that the current retailers will remain, and this project will bring art, color and activation to an alley including additional retailers. The "Bookman's Alley" is one of the more charming areas of our downtown and we have long hoped for an exciting alley activation in this area. If you would like to speak to staff or a board member, please reach out to Annie Coakley, Director of Downtown Evanston at 847-570-4724 or acoaklevPdowntownevanston.ora. Thank you, Downtown Evanston Executive Board Page 22 of 28 DesignEvanston March 2, 2020 Mr. Steve Rogin The Benamy Group 1780 Ash Street, No. 201 Northfield, Illinois 60093 Re: Proposed Alley Access Varsity Theater Building 1710 Sherman Avenue Evanston, Illinois Dear Steve, Members of the Design Evanston board of directors were pleased to meet with you on February 17, 2020, to listen to your ideas about the possible development of your building, the Varsity Theater Building at 1710 Sherman Avenue. You indicated several 813-2 Forest Avenue options under consideration for the building. Of interest to you is the possibility of Evanston, Illinois 60202 focusing some of the building's redevelopment towards the alley (Bookman's Alley) (847) 866-7480 immediately to the north of the Varsity Theater Building. The goal would be to allow www.designevanston.org pedestrian access to the alley in a way that would enrich the downtown pedestrian experience without harming the functional needs that the alley fulfills. Design Evanston finds your ideas very interesting and in line with suggestions in the 2009 Downtown Plan recommending consideration for the development of alleys for enriching downtown Evanston. We at Design Evanston feel that you should continue along this line of thought to determine the practicalities of pedestrian and commercial use of alleys. You will need to address a number of issues in any definitive proposal for the alley but we at Design Evanston recommend you continue forward. The result could be potentially an exciting addition to the downtown experience. Sincerely. Tom Hofmaier Director, Design Evanston cc: Laura Saviano, President Dave Galloway, Vice President Heidrun Hoppe, Director Jack Weiss, Director Founded in 1980, Design Evanston is a 501(c)(3) not -for -profit advocacy organization promoting gooc design in Evanston. Page 23 of 28 t,ILLIVY CAILIVILUY Alley Gallery Inc. 1712 Sherman Ave. Rear #2 Evanston, IL 60201 February 25, 2020 Mr. Steven Rogin Varsity Theatre Building 1706 Sherman Ave Evanston, IL 60201 Dear Mr. Rogin, We appreciate the opportunity to brainstorm ideas on how to activate the historic Bookman`s Alley. Being located in the alley for over thirty-five years, we have a unique perspective and emotional attachment to its authentic charm. We also have a keen awareness of the daily flow of traffic and the needs of the businesses that use the alley. Your vision of adding shop spaces along the north side of the Varsity Theatre Building would be a positive addition to the charismatic space that is beloved by its visitors. Aspects of limiting traffic flow is an interesting concept. Due to the nature of our service -oriented business, we do value having parking in front of the store, however we are sure there are potential solutions that work for all parties. There is a European charm to a pedestrian focused throughway that is appealing to our sensibilities. Please keep us updated and involved in the future of Bookman`s Alley. Thank you, Darren Oberto & Ross Martens Co -owners, Alley Gallery Inc. 1712 rear Sherman Avenue Evanston, Illinois 60201 (847) 475-1535 Fax (847) 475-0997 Page 24 of 28 �- FL0W9R!5 R.-13M i Steven Thank you for stopping by to discuss your ideas to make our small business corner more inviting and vibrant. As a long time retailer at the comer of Sherman Ave & Church St, your ideas for activating the Alley sound very interesting and would be welcome as a means to engage the community, visitors and best of all, drive more people by our front door! Plepse keep me updated as your efforts continue and if I can be of any further help, please let me know. Mark Glories Owner Saville Flowers & Gifts Page 25 of 28 E Evanston Chamber of Commerce E 1609 Sherman Ave. * Suite 205 • Evanston, IL 60201 y 847.328.1500 phone • 847.328.1510 fax • www.evchamber.com A February 20, 2020 Steven: Thank you for taking the time to stop by the office and discuss your thoughts, ideas and vision for the former Varsity Theater and the potential activation of Bookman's Alley. I was very excited by the discussion we had. Helping to create pedestrian traffic and the potential engagement of Bookman's Alley for new small businesses is something that would help the entire downtown business community! Our mission at the Chamber is "making connections, building visibility and delivering business intelligence". I certainly believe that re -purposing the Varsity Theater and activating Bookman's Alley would contribute to helping our mission and add some very unique character to the Downtown business district. Please keep me updated as to your progress and if I can be of further assistance, please let me know Regards, Roger gosa Executive Director Page 26 of 28 February 14, 2020 Mr. Steven Rogin The Benamy Group 1780 Ash St. Northfield, IL 60093 Dear Mr. Rogin, Thank you for taking the time to meet with me and to discuss plans for your property, the former Varsity Theater, and potentially Bookman's Alley. Given that your property and the Evanston Galleria are adjacent properties, I appreciate this neighborly gesture. While there have been other proposals presented to the Ward 1 community about what may be happening with the former GAP and Mattress Firm spaces, it was nice to hear ideas and concepts directly from you. A topic of interest to homeowners in my building (Evanston Galleria) is improving access to the loading dock in the rear of the building during working hours. The commercial owner uses this area for deliveries to his businesses on the ground floor, and there is often congestion in the loading dock area on a daily basis. This congestion impedes access to our freight elevator that is required for moving residents and their belongings in and out of the building. In addition, the loading dock area has become a hangout for homeless people and drug abusers at night making the area unsafe for our residents. It would be wonderful if you could find a way to develop the alley for commerce, improve traffic flow through the alleys, and help to make the area safe for residents. Please let me know if you would like to meet with our condo board to discuss these ideas further. Whether you end up staying within the existing shell or look to add more density, saving the beautiful facade and activating Bookman's Alley are ideas that I support. As we discussed, doing something to activate the alley and re -purposing the Theater provides a wonderful opportunity to address some of the issues that both our properties experience because of the lack of visibility, traffic and current uses. Best of luck with your plans, and please reach out to me any time if you'd like to discuss this further. Sincerely yours, Phil Hockberger President and Resident Evanston Galleria Condominium Association 807 Church St, unit 201 Evanston, IL 60201 630-864-8965 Page 27 of 28 Steven, Thank you for including me, as 'President of the Church Street Station Condominium Association, in the discussion of what your vision is for Bookman's Alley and the former Varsity Theater Building. What you presented and discussed certainly seems like it would be a creative use of the former Varsity Theater and help bring added charm and character to the long standing pride of Bookman's Alley. The vision of what you discussed seems like it would continue to add to the evolution of Downtown Evanston. Good luck in your pursuit of re-engaging the Theater Building and Bookman's Alley. Sincerely, James Corirossi, President Church Street Station Condominium Association Page 28 of 28